[PDF / Epub] ★ Narconomics: How to Run a Drug Cartel Author Tom Wainwright – Dolove.info
Narconomics How to Run a Drug Cartel 2016 1 2 The title should not frighten anyone because this non fiction book will not involve any difficult finance theories or the like In this book, Tom Wainwright looks at the functioning of a drug cartel from the point of view of an ordinary business If we view drug operations through the same prism that we use to evaluate an ordinary company then maybe it will be possible to devise solutions that will actually reduce mobsters business and stop the reach of their operations Wainwright embarks on his own exciting investigative work to show us how a drug cartel, like any other legal business, seeks to control the supply side, diversify, multiply its offshore locations to reduce its cost, as well as makes movements into the domain of the Internet to reach a wider pool of customers Interesting comparisons are made with McDonalds, Walmart, Coca Cola and , and, in light of these, Wainwright proposes unorthodox solutions to change policies to better tackle the issue A dramatic and interesting picture emerges of the situation and functioning of drug cartels in the world The author s main argument is very simple drug cartels function like any other business and the sooner policy makers and enforcement agencies recognise this, the sooner the issue of crime operating on a global scale will be resolved More efficient policies and actions may be devised to tackle the difficult problem if one realises that there is no use suppressing the supply side, economising on early interventions and preventative measures, and forsaking a global approach in favour of local initiative.To prove his argument, Wainwright goes on his own investigative journey to many dangerous places, showing how drugs move from their production origin, for example, on coca plantations in Bolivia, to them being sold for a price that much than quadrupled on the streets of major European cities Drawing comparisons with legal businesses, the author shows how Mexican cartels and their franchising can be equated with the operation and success of McDonalds, and how the control of supply chains by Colombian cocaine manufacturers can be compared to business operations of Walmart Drug cartels also look to diversify, as Coca Cola and Disney tried to do, sometimes with variable success Wainwright further shows how prisons function as schools for criminals hence, better jails disrupt drug cartel operations , and touches on the illustrious crime sprees of such big names in the global drug business as Pablo Escobar, El Chapo Guzman and George Jung.Cartels also use media and advertising like any other business to soften their image and reach many people, trying to gain some public acceptance drug lords have also used philanthropy to acquire an almost saintly status , writes Wainwright, 2016 104 , and the author further illustrates how the law lags behind innovations in drug compositions which means that there are always legal substances on the market that should really be banned Finally, Wainwright touches upon the ever growing power of the Internet, which revolutionises not only how legal businesses do their business but also how drug cartels operate, and brings attention to the issue of doctors sometimes being unwitting conspirators in getting their patients closer to being addicted to illegal substances by overprescribing pain medication , benefiting drug cartels in a long run.One of the great things about this book is that the author not only explains his thesis in a clear way, but also provides recommendations and solutions that stem directly from the realisation that drug cartels operate like any other business Some of his recommendations may be counter intuitive, but since no existing policy against drug cartels had a complete and undeniable success so far and, taking into account the fact that drug cartels are adaptable and their methods are ever changing, it may really be the time to finally rethink the policy and go for an unorthodox solution to the problem Wainwright writes that it is by reshaping the market, rather than by shutting it down completely, that the results will be achieved unless there is a radical change in strategy, business conditions for the mafia will remain promising Wainwright, 2016 286.Narconomics is an insightful book, but some of its sources could have been credible there are some anecdotal evidence , and there could have been less repetition Wainwright s ultimate suggestion on how to improve the situation regarding drug operations in the world is also a bit unrealistic.Wainwright s book is interesting, persuasive and easy to read, sometimes making very eye opening observations on the nature of drug cartel operations This may really be the book about drug cartels you never knew you wanted to read. Despite reading cover to cover, I am no closer to establishing my own drug cartel Apart from this dissapointment, I d recommend the book. This Is A Unique Look Into The Huge And Fascinating Multi Billion Dollar International Drug Industry Rather Than Reporting It As A War, Wainwight Looked At The Drug Trade As A Business, With A Quarter Billion Customers And Worldwide Revenues Of About Billion A Year With Similar Concerns As Any Fortune Business, Such As Human Resources, Outsourcing And Corporate Social ResponsibilitySome Of Wainwight S Insights To Help Turn The Way We Think About The War On Drugs On Its Head Include Supply And Demand Drug Cartels, As Monopoly Buyers, Use Tactics Like Forcing Their Suppliers, The Farmers, To Absorb Price Shocks When Coca Fields Are Eradicated, Rather Than Absorb It Themselves Research And Development The Cartels Have Invested In Innovative Ways To Increase Yield From Coca Plants So Even Though Less Coca Is Now Grown, It Yields Cocaine, Thus Keeping The Supply Chain In Good Shape Mergers And Acquisitions Why The Violence And Bloody Battles Of The Mexican Cartels Have Been Generated By Opportunistic Takeover Attempts Competition And Collusion Why The Mafias Running El Salvador S Drug Gangs Realized That Violent Competition Was Hurting Profits And Opted For A Strategy Of Collusion Social Responsibility How Cartels Give Back To Society By Meeting Social Needs That Governments Have Been Unable To Satisfy Media Relations How Dedicated Press Officers Communicate With And Threaten Local Journalists To Secure The Kind Of Coverage The Cartel Wants And Use The Media To Send Intimidating Messages To Their Rivals Human Resource Models How Cartels, In A Business With A High Turnover Of Personnel Because Of All The Killing Use Prisons As Employment Agencies And Training Academies To Ensure A Steady Stream Of New Recruits For Jobs That Are Risky And Don T Pay Particularly Well Franchising Lessons The Cartels Have Learned From Some Of Fortune S Restaurant BusinessUsing Classical Economics And Modern Business Theory To Explain Why Drug Cartels Work In The Way They Do And Based Seven Years Of Reporting In Than A Dozen Countries, Wainwright Provides Fascinating, Humorous And Novel Insights Into A Multibillion Dollar Worldwide Industry And Provides An Innovative Blueprint To Address The Drug Problem, As Well As A Range Of Other Criminal Activities If Mobsters Think Like Businessmen, Law Enforcers Can Thwart Them By Learning To Think Like Economists Once in a while you read a book that shatters your preconceptions and updates your world view In the wonderful Narcoeconomics How to Run a Drug Cartel , Tom Wainwright an editor at The Economist , explores the narcotics industry through an economic lens You ll see how drug cartels are much like McDonalds or Walmart than you previously thought optimizing their supply chains, competing, forming mergers, colluding, worrying about human resources, public relations and brand building, offshoring, franchising, investing in RD, dealing with rise of disruptive online marketplaces, diversifying kidnapping, prostitution, human trafficking You ll see flawed prison systems much as recruiting grounds, jobs fairs or networking events You ll see full body tattoos as an employee retention strategy By the end of it, you ll emerge with a complete and coherent picture of the narcotics industry and its dynamics, understand why Nixon s war on drugs has been so ineffective, and maybe get a few hints of how we could do better 5 5. Wainwright, an economist sent to Mexico to cover the drug wars for financial magazines, decided to apply business analysis after hearing cartel honcho after cartel honcho use business jargon to explain the trade jails are human resource departments, there are franchises, there are advertising and media branding campaigns, even price collusions with rivals if the incentives are right What ended up being really striking was the reminder not that cartels were putting on a veneer of corporatism, but that corporations had a better veneer over their violence. Narconomics How to Run a Drug Cartel, by Tom Wainwright, is a book that examines the modern drug business both illegal and legal in terms of actual business principles What results is a fairly interesting and innovative book that mixes both journalistic style interviewing and reporting with business and economic principles though these lightly Wainwright starts off examining the point of origin, ie Coca farms in Colombia and Bolivia, through the chain to the US border and the large recreational drug market in the United States While on the road, the book examines principles of the business world supply management, human resources, offshoring, alternative products and diversification From the supply side, Wainwright examines the mark up mostly of cocaine He starts in farms both illegal in Colombia and legal in Bolivia that grow Coca These farms are often poorer, and leaves sell for as little as 100 for a large bundle The mark up as it approaches the US border continues to increase, as various drug running gangs and cartels begin to take hold of the product, and the risk associated with it increases The sale price in the US, after all is said and done, is astronomically higher thousands of percentage points over the original price Drug cartels achieve similar mark ups to large corporations like WalMart they put all the price fluctuations on the shoulders of the suppliers, and as retailers charge a fairly fixed rate through the massive mark up price As Cartels control the supply, there is little room for competition to come in and undercut prices The Cockroach effect is the end result of crackdowns Most governments have been focusing on supply to combat drug trafficking They spray pesticides over farms in Colombia, or send in soldiers to burn crops This has very little actual effect on the price of the drug, and just like cockroach s, squash one farm and another will take its place The second concept relates to collusion vs competition In recent years, many of the most violent gangs in Central America have declared truces and have divided up territory to try and reduce the horrendous amounts of violence occurring, for example, in El Salvador Why What is the incentive to cease violence in this sort of business The obvious one is that it reduces the cost of training and recruiting new members Collusion can also reduce the pressure governments put on drug gangs No violence No Problems seems to be the motto The third concept is Human Resources Drug cartels employ many similar tactics as businesses when looking for recruits, although the tactics are obviously extreme is some respects Loyalty is important in most drug operations for obvious reasons Therefore, it is important to ensure members are satisfied with their employment High pay, vacations and other incentives are used to ensure members are well remunerated for their work A high exit cost in the form, often, of violence is used to dissuade members from leaving One of the cradles of any drug organization is prison Ironically, the tough on crime stance often leads to tighter structural formations and greater loyalty to drug cartels and gangs Prisoners receive protection and pay in return for working for cartels, and joining one can act as a buffer to the harsher realities of prison The fourth concept is PR Public relations is an important part of any business, and illegal drugs is no exception Threats of violence or ISIS style videos of murders or violence deters those who act against the cartel, such as bloggers and politicians, as they are seen as a threat against profits PR can work the other way, bringing folk hero status to criminals and smugglers in certain areas of Mexico, through charitable donations and infrastructure projects that promote a cartels image Finally, PR is an interesting weapon against rival cartels Want a police clampdown in a rivals territory Send in some goons to start some violence Federal police will lock the area down, and drain resources from the rival cartel An added bonus is that police are often pulled out of your own territory to assist.I won t continue much longer, but other concepts include offshoring of certain aspects of drug production, franchising to expand rapidly, diversifying to people smuggling and new drug avenues, the online drug marketplace and how it effects traditional markets, and the new legal high business, including legalization of marijuana and designer drugs that stay ahead of legislation Wainwright s book offers a lot of interesting facts and figures in relation to the world of drug cartels The way these cartels are organized is often synonymous with established business norms and strategies, albeit with a sinister twist Even so, each aspect is highly interesting, and Wainwright s mix of journalistic travelogue and hard facts can be quite good in places.The subtitle How to Run a Drug Cartel is not an apt choice, however This book focuses on regulatory reform options Tackling the demand side of the drug economy instead of the supply side for example Or offering rehabilitation for offenders over the prison incubation system that seems to be the norm currently Wainwright is off to show that the war on drugs has been a failure Prices have shot up to astronomical levels in recent years, which only squeezes addicts harder while bringing in larger profits for the ruthless cartels who cannot be squeezed out through legislative measures Was it a let down No I was expecting of a book on business stratagems that a cartel uses, or its relations to established business practices This is partially accurate However, the regulatory bend this book took was much different from what was advertised on the cover Suffice to say, this is an interesting read It examines the business of drug cartels closely, and provides an entertaining account of the mysterious world of criminal cartels This book can be recommended to those interested in the ongoing drug war, and those looking for an innovative read on business theory, albeit with a heavy dose of journalistic messaging. Someone told me that economists can make everything sound boring, and it s true.You literally tell how to run a drug cartel but economic jargon and specific point of view make it kind of uninteresting.This book isn t bad, you get what was promised in the title, and there are even a few interesting statistics. Outstanding analysis of how cartels operate and why the war on drugs has been and continues to be a dismal failure Easy read Recommended. More addictive than a bag of illicit drugs one can imagine , this book takes a look at the multi billion dollar global drug industry in an entirely different way, viewing it as a business and showcasing its different business functions Narconomics, the economics of narcotics, in other words.This is not just a book about drugs but a look at many areas of business and economics through a practical lens It is all strangely addictive, informative and engaging Tabloid newspapers need not fear this book does not advocate the taking of illegal drugs or put the drug cartels on a pedestal in any way As a business worth conservatively over USD300 billion a year, clearly those running it know what they are doing No matter about the law, you just cannot run something of this scale or size without having finely tuned structures in place If anything, the operation could arguably be even larger and certainly efficiently were it legal.You can look at the book in two distinct ways, either learning about the global drugs trade and seeing how it uses big business techniques to good effect, or you can use the examples given as a way to understanding business concepts that are often swaddled in theory and can be difficult to understand It serves both well, packaged in an easy to read, informative form.The author shows how business practices such as mergers and acquisitions, competition and collusion, social responsibility, media relations, human resources, franchising and strong management oversight are used within the drugs business You might not look at it in the same light ever again.You do not need to be interested in business to get a lot out of this book It is great for a general reader and eminently suitable for anyone with an interest in business or the global drugs industry Once you pick it up, it can be hard to put down though First off I m not about to become the next El ChapoEl Chapa Anyways I had a couple reasons for reading this book One I was looking for books on economics, and this one kept coming up as an interesting substitute to typically dry textbooks Two understanding drug culture and understanding how to better fight it is incredibly handy in my line of work So I thought I could kill two birds with one stone I wasn t disappointed At no point did I feel like this book was dry It did take me a while to get through it, but I think that has to do with the busy ness that is my life right now Tom Wainwright initially came across as a bit of a pompous ass to me, but eventuallly that seemed to go away and I really enjoyed his perspective I didn t agree with everything he had to say, but his perspective on the war on drugs was very unique His suggestions were interesting and got me thinking a bit differently than I have before It was mentally stimulating to see a perspective different than mine On the downside, I felt like a lot of his solutions were lacking essential components or overlooking a huge issue For example, his suggestion in preventing people being prescribed opioids was not to stop doctors from prescribing opioids, but to put money into treatment He felt that stopping the prescription of opioids is what pushes these addicts to turn to heroin While there is truth to that, it s only a solution to helping current addicts it doesn t prevent new addicts from being made every day by the corrupt, or at time well meaning, providers out there That said, the concept that hitting the demand side of the drug economy rather than the supply side would fight the war in a potentiallly powerful waythat has some weight to it I m mulling that over a lot Overall, I really enjoyed this book It touched on a lot of relevant topics, especially in light of the new marijuana laws in a lot of states I d rate this book an R for blatant drug discussion, topics of cartel and gang violence, and other adult themes.